Question 11 (20 marks) Mark to review this question at the end of the exam Waxtor Inc. is a Canadian public company that uses a June 30th taxation year. As a public company, it must provide financial statements based on generally accepted accounting principles. For the year ending June 30, 2019, these financial statements show an accounting Net Income of $553,000. 1. In order to assist in preparing the company's 2019 tax return, the following additional information is available. 2. The company's financial statements disclosed interest on the company's bonds payable of $13,060. This included discount amortization of $748. 3. The financial statement shows a charge for amortization of $69,500. Maximum CCA on these assets, which the company intends to deduct, would be $58,300. This does not include any CCA on Class 14.1 assets. 4. During 2019, as part of a business combination transaction, the company acquired goodwill of $40 company's accountant found that there was no impairment of this amount. 5. On January 1, 2019, the company sold temporary investments for $14,450. The adjusted cost ba book value of these investments was $11,950. 6. On March 2, 2019, the company donated a Class 10 depreciable asset to a registered charity, which it expensed. It received a charitable donations receipt for the $118,000 fair market value of the asset. The asset had a capital cost of $117,000 and a net book value in the accounting records of $100,300. The UCC balance in Class 10 was $83,760. Other assets remained in Class 10. 7. On June 30, 2018, the company had a liability for estimated warranties of $6,240. During the fiscal year of 2019, warranty costs were incurred in the amount of $5,650 and the remaining warranty liability was estimated to be $4,890 on June 30, 2019. 8. During the year, the company disposed of Class 8 depreciable assets with a capital cost of $69,000 and a net book value of $58,000 for cash proceeds of $61,000. At the beginning of the current year, the UCC balance in Class 8 was $56,720. These were the last assets in Class 8 and they were not replaced prior to the end of the fiscal year. Required: For each of the preceding pieces of information, indicate the adjustment(s) that would be required to convert the company's $553,000 accountin Income to minimum Net Income for Tax Purposes. Explanations for the adjustments are not required and no calculation of the total Net Income Tax Purposes is required. 2019 Rates, Credit and Other Data CCA Rates for Selected Assets